135-416: The Omidyar-Tufts Microfinance Fund is a microfinance investment firm established on 4 November 2005. eBay founder and social entrepreneur Pierre Omidyar and his wife Pam donated $ 100 million to their alma mater Tufts University to create the fund, which will offer millions of tiny loans to entrepreneurs in developing countries . This article about a financial services corporation of
270-748: A general armistice ended the fighting. In the German Revolution (November 1918), Wilhelm II and the ruling princes abdicated their positions, and Germany was declared a federal republic . Germany's new leadership signed the Treaty of Versailles in 1919, accepting defeat by the Allies . Germans perceived the treaty as humiliating, which was seen by historians as influential in the rise of Adolf Hitler . Germany lost around 13% of its European territory and ceded all of its colonial possessions in Africa and
405-586: A microenterprise . Those from the private-sector side respond that, because money is fungible , such a restriction is impossible to enforce, and that in any case it should not be up to rich people to determine how poor people use their money. There has been a long-standing debate over the sharpness of the trade-off between 'outreach' (the ability of a microfinance institution to reach poorer and more remote people) and its ' sustainability ' (its ability to cover its operating costs—and possibly also its costs of serving new clients—from its operating revenues). Although it
540-513: A sustainable energy supply, the debt brake for balanced budgets, measures to increase the fertility rate ( pronatalism ), and high-tech strategies for the transition of the German economy, summarised as Industry 4.0 . During the 2015 European migrant crisis , the country took in over a million refugees and migrants. Germany is the seventh-largest country in Europe . It borders Denmark to
675-567: A temperate climate, ranging from oceanic in the north and west to continental in the east and southeast. Winters range from the cold in the Southern Alps to cool and are generally overcast with limited precipitation, while summers can vary from hot and dry to cool and rainy. The northern regions have prevailing westerly winds that bring in moist air from the North Sea, moderating the temperature and increasing precipitation. Conversely,
810-475: A "deposit collector", collects money from slum dwellers, mostly women, in order for them to accumulate savings. Jyothi does her rounds throughout the city, collecting Rs5 a day from people in the slums for 220 days, however not always 220 days in a row since these women do not always have the funds available to put them into savings. They ultimately end up with Rs1000 at the end of the process. However, there are some issues with this microfinance saving program. One of
945-460: A NATO effort to provide security in that country after the ousting of the Taliban . In the 2005 elections , Angela Merkel became the first female chancellor. In 2009, the German government approved a €50 billion stimulus plan. Among the major German political projects of the early 21st century are the advancement of European integration , the energy transition ( Energiewende ) for
1080-658: A centralised totalitarian state , withdrew from the League of Nations , and dramatically increased the country's rearmament . A government-sponsored programme for economic renewal focused on public works, the most famous of which was the Autobahn . In 1935, the regime withdrew from the Treaty of Versailles and introduced the Nuremberg Laws which targeted Jews and other minorities. Germany also reacquired control of
1215-520: A commitment to community all achieve positive results from prospective financiers. Unfortunately, these labels disproportionately align with women rather than men, particularly in the developing world. The result is that microfinance continues to rely on restrictive gender norms rather than seek to subvert them through economic redress in terms of foundation change: training, business management and financial education are all elements which might be included in parameters of female-aimed loans and until they are
1350-458: A downward trend in income inequality. Rutherford argues that the basic problem that poor people face as money managers is to gather a "usefully large" amount of money. Building a new home may involve saving and protecting diverse building materials for years until enough are available to proceed with construction. Children's schooling may be funded by buying chickens and raising them for sale as needed for expenses, uniforms, bribes, etc. Because all
1485-615: A framework laid out in the 1949 constitution known as the Grundgesetz (Basic Law). Amendments generally require a two-thirds majority of both the Bundestag and the Bundesrat ; the fundamental principles of the constitution, as expressed in the articles guaranteeing human dignity, the separation of powers, the federal structure, and the rule of law , are valid in perpetuity. The president , currently Frank-Walter Steinmeier ,
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#17327879995731620-516: A group. Over time, microfinance has emerged as a larger movement whose object is: "a world in which as everyone, especially the lower income classes and socially marginalized people and households have access to a wide range of affordable, high quality financial products and services, including not just credit but also savings, insurance, payment services, and fund transfers ." Proponents of microfinance often claim that such access will help struggling classes out of poverty , including participants in
1755-680: A joint responsibility of the international community. It was the world's second-biggest aid donor in 2019 after the United States. Germany's military, the Bundeswehr (Federal Defence), is organised into the Heer (Army and special forces KSK ), Marine (Navy), Luftwaffe (Air Force) and Cyber- und Informationsraum (Cyber and Information Domain Service) branches. In absolute terms, German military spending in 2023
1890-516: A key aspect of the microcredit paradigm: that poor people get out of poverty by borrowing, building microenterprises and increasing their income. The new paradigm places more attention on the efforts of poor people to reduce their many vulnerabilities by keeping more of what they earn and building up their assets. The microfinance project of "saving up" is exemplified in the slums of the south-eastern city of Vijayawada, India. This microfinance project functions as an unofficial banking system where Jyothi,
2025-422: A limited scope of low-skilled, low-earning, informal work. Part of this is a lack of permissivity in the society; part a reflection of the added burdens of household maintenance that women shoulder alone as a result of microfinancial empowerment; and part a lack of training and education surrounding gendered conceptions of economics. In particular, the shift in norms such that women continue to be responsible for all
2160-433: A lump sum at one time in order to pay or save for specific needs they have. There are several key debates at the boundaries of microfinance. Before determining loan prices, one should take into account the following costs: 1) administrative costs by the bank (MFI) and 2) transaction cost by the client/customer. Customers, on the other hand, may have expenses for travelling to the bank branch, acquiring official documents for
2295-466: A maximum of $ 25,000. The average microfinance loan size in the US is US$ 9,732, ten times the size of an average microfinance loan in developing countries (US$ 973). While all microfinance institutions aim at increasing incomes and employment, in developing countries the empowerment of women, improved nutrition and improved education of the borrower's children are frequently aims of microfinance institutions. In
2430-712: A poverty-fighting tool. Offering loans at interest and fee rates of 37% mean that borrowers who do not manage to earn at least a 37% rate of return may actually end up poorer as a result of accepting the loans. According to a recent survey of microfinance borrowers in Ghana published by the Center for Financial Inclusion, more than one-third of borrowers surveyed reported struggling to repay their loans. Some resorted to measures such as reducing their food intake or taking children out of school in order to repay microfinance debts that had not proven sufficiently profitable. In recent years,
2565-547: A provisional capital, to emphasise its stance that the two-state solution was temporary. West Germany was established as a federal parliamentary republic with a " social market economy ". Starting in 1948 West Germany became a major recipient of reconstruction aid under the American Marshall Plan . Konrad Adenauer was elected the first federal chancellor of Germany in 1949. The country enjoyed prolonged economic growth ( Wirtschaftswunder ) beginning in
2700-589: A redress of gender norms might be instituted through individual selection fomented by the processes of such programs, but the reality is as yet uncertain. Studies have noted that the likelihood of lending to women, individually or in groups, is 38% higher than rates of lending to men. This is also due to a general trend for interpersonal microfinance relations to be conducted on grounds of similarity and internal/external recognition: lenders want to see something familiar, something supportable in potential borrowers, so an emphasis on family, goals of education and health, and
2835-409: A result, many microfinance initiatives require a large amount of social capital or trust in order to work effectively. The ability of poorer people to save may also fluctuate over time as unexpected costs may take priority which could result in them being able to save little or nothing some weeks. Rates of inflation may cause funds to lose their value, thus financially harming the saver and not benefiting
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#17327879995732970-577: A series of Imperial Reforms (approximately 1495–1555) provided for considerable local autonomy and a stronger Imperial Diet . The House of Habsburg held the imperial crown from 1438 until the death of Charles VI in 1740. Following the War of the Austrian Succession and the Treaty of Aix-la-Chapelle , Charles VI's daughter Maria Theresa ruled as empress consort when her husband, Francis I , became emperor. From 1740, dualism between
3105-638: A state, the East German authorities eased border restrictions, but this actually led to an acceleration of the Wende reform process culminating in the Two Plus Four Treaty under which Germany regained full sovereignty. This permitted German reunification on 3 October 1990, with the accession of the five re-established states of the former GDR. The fall of the Wall in 1989 became a symbol of
3240-712: A symbol of the Cold War . Tensions between East and West Germany were reduced in the late 1960s by Chancellor Willy Brandt 's Ostpolitik . In 1989, Hungary decided to dismantle the Iron Curtain and open its border with Austria , causing the emigration of thousands of East Germans to West Germany via Hungary and Austria. This had devastating effects on the GDR, where regular mass demonstrations received increasing support. In an effort to help retain East Germany as
3375-438: A tool for socio-economic development, and can be clearly distinguished from charity. Families who are destitute, or so poor they are unlikely to be able to generate the cash flow required to repay a loan, should be recipients of charity. Others are best served by financial institutions. Yakub Opeyemi have impact on Microfinance Bank. No systematic effort to map the distribution of microfinance has yet been undertaken. A benchmark
3510-634: A universal health care system , and tuition-free university education . Germany is a member of the United Nations , Council of Europe , NATO and OECD , and a founding member of the European Union, G7 and G20 . It has the third-highest number of UNESCO World Heritage Sites , 54 , of which 51 are cultural. The English word Germany derives from the Latin Germania , which came into use after Julius Caesar adopted it for
3645-499: Is an example of a microfinance institution. Microfinance initially had a limited definition: the provision of microloans to small scale entrepreneurs and small(informal sectors) businesses lacking access to credit . The two main mechanisms for the delivery of financial services to such clients were: (1) relationship-based banking for individual entrepreneurs and small businesses; and (2) group-based model, where several entrepreneurs come together to apply for loans and other services as
3780-435: Is based on the philosophy that even small amounts of credit can help end the cycle of poverty. Another benefit produced from the microfinancing initiative is that it presents opportunities, such as extending education and jobs. Families receiving microfinancing are less likely to pull their children out of school for economic reasons. As well, in relation to employment, people are more likely to open small businesses that will aid
3915-648: Is devoted to agriculture, while 30% is forested and 14% is covered by settlements or infrastructure. Plants and animals include those generally common to Central Europe. According to the National Forest Inventory, beeches , oaks , and other deciduous trees constitute just over 40% of the forests; roughly 60% are conifers , particularly spruce and pine . There are many species of ferns , flowers , fungi , and mosses . Wild animals include roe deer , wild boar , mouflon (a subspecies of wild sheep), fox , badger , hare , and small numbers of
4050-595: Is estimated at 37%, with rates reaching as high as 70% in some markets. The reason for the high interest rates is not primarily cost of capital. Indeed, the local microfinance organizations that receive zero-interest loan capital from the online microlending platform Kiva charge average interest and fee rates of 35.21%. Rather, the main reason for the high cost of microfinance loans is the high transaction cost of traditional microfinance operations relative to loan size. Microfinance practitioners have long argued that such high interest rates are simply unavoidable, because
4185-541: Is generally agreed that microfinance practitioners should seek to balance these goals to some extent, there are a wide variety of strategies, ranging from the minimalist profit-orientation of BancoSol in Bolivia to the highly integrated not-for-profit orientation of BRAC in Bangladesh . This is true not only for individual institutions, but also for governments engaged in developing national microfinance systems. BRAC
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4320-515: Is impossible for women to do more than pay off a current loan only to take on another in a cyclic pattern which is beneficial to the financier but hardly to the borrower. This gender essentializing crosses over from institutionalized lenders such as the Grameen Bank into interpersonal direct lending through charitable crowd-funding operations, such as Kiva. More recently, the popularity of non-profit global online lending has grown, suggesting that
4455-492: Is in favour of the group model. This particular model (used by many Microfinance institutions) makes financial sense, he says, because it reduces transaction costs. Microfinance programmes also need to be based on local funds. Poor people borrow from informal moneylenders and save with informal collectors. They receive loans and grants from charities . They buy insurance from state-owned companies. They receive funds transfers through formal or informal remittance networks. It
4590-608: Is largely autonomous in regard to its internal organisation. As of 2017 , Germany is divided into 401 districts ( Kreise ) at a municipal level; these consist of 294 rural districts and 107 urban districts . Germany has a civil law system based on Roman law with some references to Germanic law . The Bundesverfassungsgericht (Federal Constitutional Court) is the German Supreme Court responsible for constitutional matters, with power of judicial review . Germany's specialized supreme court system includes
4725-434: Is not easy to distinguish microfinance from similar activities. It could be claimed that a government that orders state banks to open deposit accounts for poor consumers, or a moneylender that engages in usury , or a charity that runs a heifer pool are engaged in microfinance. Ensuring financial services to poor people is best done by expanding the number of financial institutions available to them, as well as by strengthening
4860-514: Is shown in Nairobi, Kenya which includes a Rotating Savings and Credit Associations or ROSCAs initiative. This is a small scale example, however Rutherford (2009) describes a woman he met in Nairobi and studied her ROSCA. Every day 15 women would save 100 shillings so there would be a lump sum of 1,500 shillings and every day 1 of the 15 women would receive that lump sum. This would continue for 15 days and another woman within this group would receive
4995-681: Is that microcredit is addressing only half the problem, and arguably the less important half: poor people borrow to help them save and accumulate assets. However, microfinance is not the magical solution to take people out of poverty; it is merely a tool that the poor can use to raise their prospects for an escape from poverty. Most needs are met through a mix of saving and credit. A benchmark impact assessment of Grameen Bank and two other large microfinance institutions in Bangladesh found that for every $ 1 they were lending to clients to finance rural non-farm micro-enterprise , about $ 2.50 came from other sources, mostly their clients' savings. This parallels
5130-653: Is the head of state and invested primarily with representative responsibilities and powers. He is elected by the Bundesversammlung (federal convention), an institution consisting of the members of the Bundestag and an equal number of state delegates. The second-highest official in the German order of precedence is the Bundestagspräsident ( President of the Bundestag ), who is elected by
5265-416: Is the subject of controversy, as it is claimed that microfinance improves the status of women through an alleviation of poverty. It is argued that by providing women with initial capital, they will be able to support themselves independent of men, in a manner which would encourage sustainable growth of enterprise and eventual self-sufficiency. This claim has yet to be proven in any substantial form. Moreover,
5400-488: Is vested in the parliament consisting of the Bundestag (Federal Diet) and Bundesrat (Federal Council), which together form the legislative body. The Bundestag is elected through direct elections using the mixed-member proportional representation system. The members of the Bundesrat represent and are appointed by the governments of the sixteen federated states. The German political system operates under
5535-463: The Gründerzeit period following the unification of Germany, Bismarck's foreign policy as chancellor of Germany secured Germany's position as a great nation by forging alliances and avoiding war. However, under Wilhelm II , Germany took an imperialistic course, leading to friction with neighbouring countries. A dual alliance was created with the multinational realm of Austria-Hungary ;
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5670-491: The Bundestag and responsible for overseeing the daily sessions of the body. The third-highest official and the head of government is the chancellor, who is appointed by the Bundespräsident after being elected by the party or coalition with the most seats in the Bundestag . The chancellor, currently Olaf Scholz , is the head of government and exercises executive power through his Cabinet . Since 1949,
5805-955: The Allies de jure abolished the German state and partitioned Berlin and Germany's remaining territory into four occupation zones. The western sectors, controlled by France, the United Kingdom , and the United States , were merged on 23 May 1949 to form the Federal Republic of Germany ( German : Bundesrepublik Deutschland ); on 7 October 1949, the Soviet Zone became the German Democratic Republic (GDR) ( German : Deutsche Demokratische Republik ; DDR). They were informally known as West Germany and East Germany. East Germany selected East Berlin as its capital, while West Germany chose Bonn as
5940-625: The Battle of Britain in the same year. In 1941, German troops invaded Yugoslavia , Greece and the Soviet Union . By 1942, Germany and its allies controlled most of continental Europe and North Africa , but following the Soviet victory at the Battle of Stalingrad , the Allied reconquest of North Africa and invasion of Italy in 1943, German forces suffered repeated military defeats. In 1944,
6075-597: The Berchtesgaden National Park . In addition, there are 17 Biosphere Reserves , and 105 nature parks . More than 400 zoos and animal parks operate in Germany. The Berlin Zoo , which opened in 1844, is the oldest in Germany, and claims the most comprehensive collection of species in the world. Germany is a federal , parliamentary , representative democratic republic. Federal legislative power
6210-587: The Caribbean (14 million accounts representing 3% of the total population) and Africa (27 million accounts representing 4% of the total population, with the highest rate of penetration in West Africa, and the highest growth rate in Eastern and Southern Africa ). Considering that most bank clients in the developed world need several active accounts to keep their affairs in order, these figures indicate that
6345-1186: The Eurasian beaver . The blue cornflower was once a German national symbol . The 16 national parks in Germany include the Jasmund National Park , the Vorpommern Lagoon Area National Park , the Müritz National Park , the Wadden Sea National Parks , the Harz National Park , the Hainich National Park , the Black Forest National Park , the Saxon Switzerland National Park , the Bavarian Forest National Park and
6480-627: The European Union (light green) Germany , officially the Federal Republic of Germany , is a country in Central Europe . It lies between the Baltic and North Sea to the north and the Alps to the south. Its sixteen constituent states have a total population of over 82 million in an area of 357,596 km (138,069 sq mi), making it the most populous member state of
6615-660: The Fall of Communism , the dissolution of the Soviet Union , German reunification and Die Wende ("the turning point"). United Germany was considered the enlarged continuation of West Germany so it retained its memberships in international organisations. Based on the Berlin/Bonn Act (1994), Berlin again became the capital of Germany, while Bonn obtained the unique status of a Bundesstadt (federal city) retaining some federal ministries. The relocation of
6750-652: The German Revolution of 1918–1919 , the Empire was replaced by the Weimar Republic . The Nazi rise to power in 1933 led to the establishment of a totalitarian dictatorship , World War II , and the Holocaust . In 1949, after the war and a period of Allied occupation , Germany was organized into two separate polities with limited sovereignty: the Federal Republic of Germany, or West Germany , and
6885-726: The Investiture controversy . Under the Hohenstaufen emperors (1138–1254), German princes encouraged German settlement to the south and east ( Ostsiedlung ). Members of the Hanseatic League , mostly north German towns, prospered in the expansion of trade. The population declined starting with the Great Famine in 1315, followed by the Black Death of 1348–1350. The Golden Bull issued in 1356 provided
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#17327879995737020-657: The Jastorf culture during the Nordic Bronze Age or early Iron Age . From southern Scandinavia and northern Germany , they expanded south, east, and west, coming into contact with the Celtic , Iranian , Baltic , and Slavic tribes. Southern Germany was inhabited by Celtic-speaking peoples, who belonged to the wider La Tène culture . They were later assimilated by the Germanic conquerors. Under Augustus ,
7155-703: The Lower Paleolithic , with various tribes inhabiting it from the Neolithic onward, chiefly the Celts . Various Germanic tribes have inhabited the northern parts of modern Germany since classical antiquity . A region named Germania was documented before AD 100. In 962, the Kingdom of Germany formed the bulk of the Holy Roman Empire . During the 16th century, northern German regions became
7290-516: The Microcredit Summit Campaign . For many, microfinance is a way to promote economic development , employment and growth through the support of micro-entrepreneurs and small businesses; for others it is a way for the disadvantaged/ less privileged to manage their finances more effectively and take advantage of economic opportunities while managing the risks. Critics often point to some of the ills of micro-credit that can create indebtedness. Many studies have tried to assess its impacts. New research in
7425-467: The Molotov–Ribbentrop Pact that divided Eastern Europe into German and Soviet spheres of influence. On 1 September 1939, Germany invaded Poland , beginning World War II in Europe ; Britain and France declared war on Germany on 3 September. In the spring of 1940, Germany conquered Denmark and Norway , the Netherlands , Belgium , Luxembourg , and France , forcing the French government to sign an armistice . The British repelled German air attacks in
7560-529: The Roman Empire began to invade lands inhabited by the Germanic tribes, creating a short-lived Roman province of Germania between the Rhine and Elbe rivers. In 9 AD, three Roman legions were defeated by Arminius in the Battle of the Teutoburg Forest . The outcome of this battle dissuaded the Romans from their ambition of conquering Germania and is thus considered one of the most important events in European history . By 100 AD, when Tacitus wrote Germania , Germanic tribes had settled along
7695-430: The Saarland in 1935, remilitarised the Rhineland in 1936, annexed Austria in 1938, annexed the Sudetenland in 1938 with the Munich Agreement , and in violation of the agreement occupied Czechoslovakia in March 1939. Kristallnacht (Night of Broken Glass) saw the burning of synagogues, the destruction of Jewish businesses, and mass arrests of Jewish people. In August 1939, Hitler's government negotiated
7830-450: The Triple Alliance of 1882 included Italy. Britain, France and Russia also concluded alliances to protect against Habsburg interference with Russian interests in the Balkans or German interference against France. At the Berlin Conference in 1884, Germany claimed several colonies including German East Africa , German South West Africa , Togoland , and Kamerun . Later, Germany further expanded its colonial empire to include holdings in
7965-459: The US , microfinance organizations target marginalized populations unable to access mainstream bank financing. Close to 8% of Americans are unbanked, meaning around 9 million are without any kind of bank account or formal financial services. Most of these institutions are structured as nonprofit organizations . Microloans in the U.S. context is defined as the extension of credit up to $ 50,000. In Canada, CRA guidelines restrict microfinance loans to
8100-797: The developed world as financial are not monetized : that is, money is not used to carry them out. This is often the case when people need the services money can provide but do not have dispensable funds required for those services. This forces them to revert to other means of acquiring the funds. In their book, The Poor and Their Money , Stuart Rutherford and Sukhwinder Arora cite several types of needs: People find creative and often collaborative ways to meet these needs, primarily through creating and exchanging different forms of non-cash value. Common substitutes for cash vary from country to country, but typically include livestock, grains, jewelry and precious metals. As Marguerite S. Robinson describes in his book, The Micro Finance Revolution: Sustainable Finance for
8235-409: The former East German states join the Federal Republic of Germany on 3 October 1990 . Germany has been described as a great power with a strong economy ; it has the largest economy in Europe by nominal GDP . As a global power in industrial, scientific and technological sectors, it is both the world's third-largest exporter and importer . As a developed country , it offers social security ,
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#17327879995738370-417: The inquisitorial Federal Court of Justice for civil and criminal cases, along with the Federal Labour Court , Federal Social Court , Federal Fiscal Court , and Federal Administrative Court for other matters. Criminal and private laws are codified on the national level in the Strafgesetzbuch and the Bürgerliches Gesetzbuch respectively. The German penal system seeks the rehabilitation of
8505-428: The revolutions of 1848 in the German states , raising the German question. King Frederick William IV of Prussia was offered the title of emperor, but with a loss of power; he rejected the crown and the proposed constitution, a temporary setback for the movement. King William I appointed Otto von Bismarck as the Minister President of Prussia in 1862. Bismarck successfully concluded the war with Denmark in 1864 ;
8640-428: The "Evangelical" faith ( Lutheranism ), but also decreed that the faith of the prince was to be the faith of his subjects ( cuius regio, eius religio ). From the Cologne War through the Thirty Years' Wars (1618–1648), religious conflict devastated German lands and significantly reduced the population. The Peace of Westphalia ended religious warfare among the Imperial Estates . The legal system initiated by
8775-489: The 15th century to the founders of the European credit union movement in the 19th century (such as Friedrich Wilhelm Raiffeisen ) and the founders of the microcredit movement in the 1970s (such as Muhammad Yunus and Al Whittaker ), have tested practices and built institutions designed to bring the kinds of opportunities and risk-management tools that financial services can provide to the doorsteps of poor people. The history of microfinancing can be traced back as far as
8910-414: The Alps. Subsequently, the Holy Roman Empire emerged from it. The Ottonian rulers (919–1024) consolidated several major duchies . In 996, Gregory V became the first German Pope, appointed by his cousin Otto III , whom he shortly after crowned Holy Roman Emperor. The Holy Roman Empire absorbed northern Italy and Burgundy under the Salian emperors (1024–1125), although the emperors lost power through
9045-411: The Austrian Habsburg monarchy and the Kingdom of Prussia dominated German history. In 1772, 1793, and 1795, Prussia and Austria, along with the Russian Empire , agreed to the Partitions of Poland . During the period of the French Revolutionary Wars , the Napoleonic era and the subsequent final meeting of the Imperial Diet , most of the Free Imperial Cities were annexed by dynastic territories;
9180-419: The European Union . It borders Denmark to the north, Poland and the Czech Republic to the east, Austria and Switzerland to the south, and France , Luxembourg , Belgium , and the Netherlands to the west. The nation's capital and most populous city is Berlin and its main financial centre is Frankfurt ; the largest urban area is the Ruhr . Settlement in the territory of modern Germany began in
9315-405: The Franks established the Frankish Kingdom and pushed east to subjugate Saxony and Bavaria . Areas of what is today eastern Germany were inhabited by Western Slavic tribes. Charlemagne founded the Carolingian Empire in 800; it was divided in 843 . The eastern successor kingdom of East Francia stretched from the Rhine in the west to the Elbe river in the east and from the North Sea to
9450-437: The German Bundestag , though they have never been part of the federal government. In the 2017 German federal election , the right-wing populist Alternative for Germany gained enough votes to attain representation in the parliament for the first time. Germany is a federation and comprises sixteen constituent states which are collectively referred to as Länder . Each state ( Land ) has its own constitution, and
9585-423: The German Democratic Republic, or East Germany . Berlin continued its de jure Four Power status . The Federal Republic of Germany was a founding member of the European Economic Community and the European Union , while the German Democratic Republic was a communist Eastern Bloc state and member of the Warsaw Pact . After the fall of the communist led-government in East Germany, German reunification saw
9720-493: The Holocaust , the German government persecuted minorities , including interning them in concentration and death camps across Europe. The regime systematically murdered 6 million Jews, at least 130,000 Romani , 275,000 disabled , thousands of Jehovah's Witnesses , thousands of homosexuals , and hundreds of thousands of political and religious opponents . Nazi policies in German-occupied countries resulted in
9855-630: The Pacific and China. The colonial government in South West Africa (present-day Namibia ), from 1904 to 1907, carried out the annihilation of the local Herero and Namaqua peoples as punishment for an uprising; this was the 20th century's first genocide . The assassination of Austria's crown prince on 28 June 1914 provided the pretext for Austria-Hungary to attack Serbia and trigger World War I . After four years of warfare, in which approximately two million German soldiers were killed,
9990-684: The Pacific. On 11 August 1919, President Friedrich Ebert signed the democratic Weimar Constitution . In the subsequent struggle for power, communists seized power in Bavaria , but conservative elements elsewhere attempted to overthrow the Republic in the Kapp Putsch . Street fighting in the major industrial centres, the occupation of the Ruhr by Belgian and French troops, and a period of hyperinflation followed. A debt restructuring plan and
10125-462: The Poor , the 1980s demonstrated that "micro finance could provide large-scale outreach profitably", and in the 1990s, "micro finance began to develop as an industry". In the 2000s, the microfinance industry's objective was to satisfy the unmet demand on a much larger scale, and to play a role in reducing poverty. While much progress has been made in developing a viable, commercial microfinance sector in
10260-599: The Reichstag after a special election in 1932 and Hindenburg appointed Hitler as chancellor of Germany on 30 January 1933. After the Reichstag fire , a decree abrogated basic civil rights and the first Nazi concentration camp opened. On 23 March 1933, the Enabling Act gave Hitler unrestricted legislative power, overriding the constitution, and marked the beginning of Nazi Germany. His government established
10395-639: The Rhine and the Danube (the Limes Germanicus ), occupying most of modern Germany. However, Baden-Württemberg , southern Bavaria , southern Hesse and the western Rhineland had been incorporated into Roman provinces . Around 260, Germanic peoples broke into Roman-controlled lands. After the invasion of the Huns in 375, and with the decline of Rome from 395, Germanic tribes moved farther southwest:
10530-672: The Soviets pushed into Eastern Europe ; the Western allies landed in France and entered Germany despite a final German counteroffensive . Following Hitler's suicide during the Battle of Berlin , Germany signed the surrender document on 8 May 1945, ending World War II in Europe and Nazi Germany. Following the end of the war, surviving Nazi officials were tried for war crimes at the Nuremberg trials . In what later became known as
10665-545: The US and Canada, aims of microfinance include the graduation of recipients from welfare programs and an improvement in their credit rating. In the US, microfinance has created jobs directly and indirectly, as 60% of borrowers were able to hire others. According to reports, every domestic microfinance loan creates 2.4 jobs. These entrepreneurs provide wages that are, on average, 25% higher than minimum wage. Small business loans eventually allow small business owners to make their businesses their primary source of income, with 67% of
10800-653: The United States is a stub . You can help Misplaced Pages by expanding it . Microfinance Microfinance consists of financial services targeting individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit , the provision of small loans to poor clients; savings and checking accounts ; microinsurance ; and payment systems , among other services. Microfinance services are designed to reach excluded customers, usually low income population segments, possibly socially marginalized, or geographically more isolated, and to help them become self-sufficient. ID Ghana
10935-472: The area of microfinance calls for better understanding of the microfinance ecosystem so that the microfinance institutions and other facilitators can formulate sustainable strategies that will help create social benefits through better service delivery to the low-income population. Over the past centuries, practical visionaries, from the Franciscan friars who founded the community-oriented pawnshops of
11070-416: The attraction of women as a potential investment base is precisely because they are constrained by socio-cultural norms regarding such concepts of obedience, familial duty, household maintenance and passivity. The result of these norms is that while micro-lending may enable women to improve their daily subsistence to a more steady pace, they will not be able to engage in market-oriented business practice beyond
11205-514: The borrowers showing a significant increase in their income as a result of their participation in certain micro-loan programs. In addition, these business owners are able to improve their housing situation, 70% indicating their housing has improved. Ultimately, many of the small business owners that use social funding are able to graduate from government funding. Germany – in Europe (light green & dark grey) – in
11340-516: The capacity of those institutions. In recent years there has also been increasing emphasis on expanding the diversity of institutions, since different institutions serve different needs. Some principles that summarize a century and a half of development practice were encapsulated in 2004 by CGAP and endorsed by the Group of Eight leaders at the G8 Summit on 10 June 2004: Microfinance is considered
11475-922: The centre of the Protestant Reformation . Following the Napoleonic Wars and the dissolution of the Holy Roman Empire in 1806, the German Confederation was formed in 1815. Formal unification of Germany into the modern nation-state commenced on 18 August 1866 with the North German Confederation Treaty establishing the Prussia -led North German Confederation , which became the German Empire in 1871. After World War I and
11610-568: The collector. While the success of the Grameen Bank (which now serves over 7 million poor Bangladeshi women) has inspired the world, it has proved difficult to replicate this success. In nations with lower population densities, meeting the operating costs of a retail branch by serving nearby customers has proven considerably more challenging. Hans Dieter Seibel, board member of the European Microfinance Platform,
11745-530: The communist-controlled Socialist Unity Party of Germany , supported by the Stasi , an immense secret service. While East German propaganda was based on the benefits of the GDR's social programmes and the alleged threat of a West German invasion, many of its citizens looked to the West for freedom and prosperity. The Berlin Wall , built in 1961, prevented East German citizens from escaping to West Germany, becoming
11880-595: The constitutional structure of the Empire and codified the election of the emperor by seven prince-electors . Johannes Gutenberg introduced moveable-type printing to Europe, laying the basis for the democratization of knowledge . In 1517, Martin Luther incited the Protestant Reformation and his translation of the Bible began the standardization of the language; the 1555 Peace of Augsburg tolerated
12015-471: The cost of making each loan cannot be reduced below a certain level while still allowing the lender to cover costs such as offices and staff salaries. For example, in Sub-Saharan Africa credit risk for microfinance institutes is very high, because customers need years to improve their livelihood and face many challenges during this time. Financial institutes often do not even have a system to check
12150-425: The cost of microloans to below 10% for borrowers, including interest which is paid out to lenders. However, it remains to be seen whether such radical alternative models can reach the scale necessary to compete with traditional microfinance programs. Practitioners and donors from the charitable side of microfinance frequently argue for restricting microcredit to loans for productive purposes—such as to start or expand
12285-469: The creation of a new currency in 1924 ushered in the Golden Twenties , an era of artistic innovation and liberal cultural life. The worldwide Great Depression hit Germany in 1929. Chancellor Heinrich Brüning 's government pursued a policy of fiscal austerity and deflation which caused unemployment of nearly 30% by 1932. The Nazi Party led by Adolf Hitler became the largest party in
12420-472: The creation of a more unified European political, economic and security apparatus. The governments of Germany and the United States are close political allies . Cultural ties and economic interests have crafted a bond between the two countries resulting in Atlanticism . After 1990, Germany and Russia worked together to establish a "strategic partnership" in which energy development became one of
12555-446: The creation of new jobs. Overall, the benefits outline that the microfinancing initiative is set out to improve the standard of living amongst impoverished communities. There are also many social and financial challenges for microfinance initiatives. For example, more articulate and better-off community members may cheat poorer or less-educated neighbours. This may occur intentionally or inadvertently through loosely run organizations. As
12690-536: The criminal and the protection of the public. With the exceptions of petty crimes, tried by a single professional judge, and of serious political crimes, all charges are adjudicated by mixed tribunals where lay judges ( Schöffen ) and professional judges preside together. As of 2016, Germany's murder rate stood at a low of 1.18 murders per 100,000. In 2018, the overall crime rate fell to its lowest since 1992. Same-sex marriage has been legal in Germany since 2017, and LGBT rights are generally protected in
12825-461: The deaths of an estimated 2.7 million Poles , 1.3 million Ukrainians , 1 million Belarusians and 3.5 million Soviet prisoners of war . German military casualties have been estimated at 5.3 million, and around 900,000 German civilians died. Around 12 million ethnic Germans were expelled from across Eastern Europe, and Germany lost roughly one-quarter of its pre-war territory. After Nazi Germany surrendered,
12960-416: The developing world. Help can come in the form of more and better-qualified staff, thus higher education is needed for microfinance institutions. This has begun in some universities, as Oliver Schmidt describes. Mind the management gap In recent years, there have been calls for better understanding of the ecosystem of Microfinance. The practitioners and researchers felt that it was important to understand
13095-430: The domestic private sphere labour as well as undertaking public economic support for their families, independent of male aid increases rather than decreases burdens on already limited persons. If there were to be an exchange of labour, or if women's income were supplemental rather than essential to household maintenance, there might be some truth to claims of establishing long-term businesses; however when so constrained it
13230-641: The early 1950s. West Germany joined NATO in 1955 and was a founding member of the European Economic Community . On 1 January 1957, the Saarland joined West Germany. East Germany was an Eastern Bloc state under political and military control by the Soviet Union via occupation forces and the Warsaw Pact . Although East Germany claimed to be a democracy, political power was exercised solely by leading members ( Politbüro ) of
13365-648: The ecclesiastical territories were secularised and annexed. In 1806 the Imperium was dissolved; France, Russia, Prussia, and the Habsburgs (Austria) competed for hegemony in the German states during the Napoleonic Wars . Following the fall of Napoleon , the Congress of Vienna founded the German Confederation, a loose league of 39 sovereign states . The appointment of the emperor of Austria as
13500-471: The ecosystem in which microfinance institutions operated in order for the market system actors and facilitators to understand what they have to do to achieve their objectives of participating in the ecosystem. Professors Debapratim Purkayastha , Trilochan Tripathy and Biswajit Das have designed a model for the ecosystem of microfinance institutions (MFIs) in India. The researchers mapped the ecosystem and found
13635-399: The ecosystem to be very complicated, with complex interactions among numerous actors themselves, and their environment. This ecosystem framework can be used by MFIs to understand the ecosystem of microfinance and formulate strategy. It can also help other stakeholders such as donors, investors, banks, government, etc. to formulate their own strategies relating to this sector. In Canada and
13770-776: The end of 2009, it was tracking 1,084 MFIs that were serving 74 million borrowers ($ 38 billion in outstanding loans) and 67 million savers ($ 23 billion in deposits). Another source of information regarding the environment of microfinance is the Global Microscope on the Microfinance Business Environment, prepared by the Economist Intelligence Unit (EIU), the Inter-American Development Bank , and others. The 2011 report contains information on
13905-921: The environment of microfinance in 55 countries among two categories, the regulatory framework and the supporting institutional framework. This publication, also known as the Microscope, was first developed in 2007, focusing only on Latin America and the Caribbean, but by 2009, this report had become a global study. As yet there are no studies that indicate the scale or distribution of 'informal' microfinance organizations like ROSCA 's and informal associations that help people manage costs like weddings, funerals and sickness. Numerous case studies have been published, however, indicating that these organizations, which are generally designed and managed by poor people themselves with little outside help, operate in most countries in
14040-547: The experience in the West, in which family businesses are funded mostly from savings, especially during start-up. Recent studies have also shown that informal methods of saving are unsafe. For example, a study by Wright and Mutesasira in Uganda concluded that "those with no option but to save in the informal sector are almost bound to lose some money—probably around one quarter of what they save there". The work of Rutherford, Wright and others has caused practitioners to reconsider
14175-412: The fundamental assumptions underlying microfinance: that microfinance borrowers need extensive monitoring and interaction with loan officers in order to benefit from and repay their loans. The P2P microlending service Zidisha is based on this premise, facilitating direct interaction between individual lenders and borrowers via an internet community rather than physical offices. Zidisha has managed to bring
14310-492: The fundamental reality of women as a disadvantaged section of societies in developing states will go untested. Microfinancing produces many benefits for poverty stricken and low-income households. One of the benefits is that it is very accessible. Banks today simply won't extend loans to those with little to no assets, and generally don't engage in small size loans typically associated with microfinancing. Through microfinancing small loans are produced and accessible. Microfinancing
14445-617: The government was completed in 1999, and modernisation of the East German economy was scheduled to last until 2019. Since reunification, Germany has taken a more active role in the European Union , signing the Maastricht Treaty in 1992 and the Lisbon Treaty in 2007, and co-founding the eurozone . Germany sent a peacekeeping force to secure stability in the Balkans and sent German troops to Afghanistan as part of
14580-433: The issues is that while saving, clients are actually losing part of their savings. Jyothi takes interest from each client—about 20 out of every 220 payments, or Rs100 out of 1,100 or 9%. When these slum dwellers find someone they trust, they are willing to pay up to 30% to someone to safely collect and keep their savings. There is also the risk of entrusting their savings to unlicensed, informal, peripatetic collectors. However,
14715-424: The last few decades, several issues remain that need to be addressed before the industry will be able to satisfy massive worldwide demand. The obstacles or challenges in building a sound commercial microfinance industry include: Microfinance is the proper tool to reduce income inequality, allowing citizens from lower socio-economical classes to participate in the economy. Moreover, its involvement has shown to lead to
14850-451: The loan application, and loss of time when dealing with the MFI (" opportunity costs "). Hence, from a customer's point of view the cost of a loan is not only the interest and fees she/he has to pay, but also all other transaction costs that she/he has to cover. One of the principal challenges of microfinance is providing small loans at an affordable cost. The global average interest and fee rate
14985-514: The lump sum. At the end of the 15 days a new cycle would start. This ROSCA initiative is different from the "saving up" example above because there are no interest rates affiliated with the ROSCA, additionally everyone receives back what they put forth. This initiative requires trust and social capital networks in order to work, so often these ROSCAs include people who know each other and have reciprocity. The ROSCA allows for marginalized groups to receive
15120-549: The microfinance industry has shifted its focus from the objective of increasing the volume of lending capital available, to address the challenge of providing microfinance loans more affordably. Microfinance analyst David Roodman contends that, in mature markets, the average interest and fee rates charged by microfinance institutions tend to fall over time. However, global average interest rates for microfinance loans are still well above 30%. The answer to providing microfinance services at an affordable cost may lie in rethinking one of
15255-487: The middle of the 1800s, when the theorist Lysander Spooner was writing about the benefits of small credits to entrepreneurs and farmers as a way of getting the people out of poverty. Independently of Spooner, Friedrich Wilhelm Raiffeisen founded the first cooperative lending banks to support farmers in rural Germany . The modern use of the expression "microfinancing" has roots in the 1970s when Grameen Bank of Bangladesh , founded by microfinance pioneer Muhammad Yunus ,
15390-477: The most important factors. As a result of the cooperation, Germany imported most of its natural gas and crude oil from Russia. Germany's development policy functions as a distinct sector within its foreign policy framework. It is formulated by the Federal Ministry for Economic Cooperation and Development and carried out by the implementing organisations. The German government sees development policy as
15525-587: The movement, however, they also included postal savings banks (318 million accounts), state agricultural and development banks (172 million accounts), financial cooperatives and credit unions (35 million accounts) and specialized rural banks (19 million accounts). Regionally, the highest concentration of these accounts was in India (188 million accounts representing 18% of the total national population). The lowest concentrations were in Latin America and
15660-660: The nation. Germany has a network of 227 diplomatic missions abroad and maintains relations with more than 190 countries. Germany is a member of NATO , the OECD , the G7 , the G20 , the World Bank and the IMF . It has played an influential role in the European Union since its inception and has maintained a strong alliance with France and all neighbouring countries since 1990. Germany promotes
15795-660: The north, Poland and Czechia to the east, Austria and Switzerland to the south, and France , Luxembourg , Belgium , and the Netherlands to the west. Germany is also bordered by the North Sea and, at the north-northeast, by the Baltic Sea. German territory covers 357,596 km (138,069 sq mi). Elevation ranges from the mountains of the Alps (highest point: the Zugspitze at 2,963 metres or 9,721 feet) in
15930-613: The party system has been dominated by the Christian Democratic Union and the Social Democratic Party of Germany . So far every chancellor has been a member of one of these parties. However, the smaller liberal Free Democratic Party and the Alliance 90/The Greens have also been junior partners in coalition governments . Since 2007, the democratic socialist party The Left has been a staple in
16065-677: The people' (see also the Latinised form Theodiscus ), derived from * þeudō , descended from Proto-Indo-European * tewtéh₂- 'people', from which the word Teutons also originates. Pre-human ancestors, the Danuvius guggenmosi , who were present in Germany over 11 million years ago, are theorized to be among the earliest ones to walk on two legs. Ancient humans were present in Germany at least 600,000 years ago. The first non-modern human fossil (the Neanderthal )
16200-507: The peoples east of the Rhine . The German term Deutschland , originally diutisciu land ('the German lands'), is derived from deutsch ( cf. Dutch ), descended from Old High German diutisc 'of the people' (from diot or diota 'people'), originally used to distinguish the language of the common people from Latin and its Romance descendants . This in turn descends from Proto-Germanic * þiudiskaz 'of
16335-477: The permanent president reflected the Congress's rejection of Prussia 's rising influence. Disagreement within restoration politics partly led to the rise of liberal movements, followed by new measures of repression by Austrian statesman Klemens von Metternich . The Zollverein , a tariff union, furthered economic unity. In light of revolutionary movements in Europe , intellectuals and commoners started
16470-438: The person's identity. Additionally, they are unable to design new products and enlarge their business to reduce the risk. The result is that the traditional approach to microfinance has made only limited progress in resolving the problem it purports to address: that the world's poorest people pay the world's highest cost for small business growth capital. The high costs of traditional microfinance loans limit their effectiveness as
16605-519: The primary focus of service delivery. Evidence shows that they are less likely to default on their loans than men. Industry data from 2006 for 704 MFIs reaching 52 million borrowers includes MFIs using the solidarity lending methodology (99.3% female clients) and MFIs using individual lending (51% female clients). The delinquency rate for solidarity lending was 0.9% after 30 days (individual lending—3.1%), while 0.3% of loans were written off (individual lending—0.9%). Because operating margins become tighter
16740-467: The slum dwellers are willing to accept this risk because they are unable to save at home, and unable to use the remote and unfriendly banks in their country. This microfinance project also has many benefits, such as empowering women and giving parents the ability to save money for their children's education. This specific microfinance project is an example of the benefits and limitations of the "saving up" project. The microfinance project of "saving through"
16875-452: The smaller the loans delivered, many MFIs consider the risk of lending to men to be too high. This focus on women is questioned sometimes, however a recent study of microentrepreneurs from Sri Lanka published by the World Bank found that the return on capital for male-owned businesses (half of the sample) averaged 11%, whereas the return for women-owned businesses was 0% or slightly negative. Microfinance's emphasis on female-oriented lending
17010-607: The south to the shores of the North Sea ( Nordsee ) in the northwest and the Baltic Sea ( Ostsee ) in the northeast. The forested uplands of central Germany and the lowlands of northern Germany (lowest point: in the municipality Neuendorf-Sachsenbande , Wilstermarsch at 3.54 metres or 11.6 feet below sea level ) are traversed by such major rivers as the Rhine, Danube and Elbe. Significant natural resources include iron ore, coal, potash , timber, lignite , uranium , copper, natural gas, salt, and nickel. Most of Germany has
17145-974: The southeast regions have more extreme temperatures. From February 2019 – 2020, average monthly temperatures in Germany ranged from a low of 3.3 °C (37.9 °F) in January 2020 to a high of 19.8 °C (67.6 °F) in June 2019. Average monthly precipitation ranged from 30 litres per square metre in February and April 2019 to 125 litres per square metre in February 2020. Average monthly hours of sunshine ranged from 45 in November 2019 to 300 in June 2019. The territory of Germany can be divided into five terrestrial ecoregions : Atlantic mixed forests , Baltic mixed forests , Central European mixed forests , Western European broadleaf forests , and Alps conifer and mixed forests . As of 2016 , 51% of Germany's land area
17280-762: The subsequent decisive Prussian victory in the Austro-Prussian War of 1866 enabled him to create the North German Confederation which excluded Austria . After the defeat of France in the Franco-Prussian War , the German princes proclaimed the founding of the German Empire in 1871. Prussia was the dominant constituent state of the new empire; the King of Prussia ruled as its Kaiser, and Berlin became its capital. In
17415-509: The task the microfinance movement has set for itself is still very far from finished. By type of service, "savings accounts in alternative finance institutions outnumber loans by about four to one. This is a worldwide pattern that does not vary much by region." An important source of detailed data on selected microfinance institutions is the MicroBanking Bulletin , which is published by Microfinance Information Exchange . At
17550-461: The value is accumulated before it is needed, this money management strategy is referred to as "saving up". Often, people don't have enough money when they face a need, so they borrow. A poor family might borrow from relatives to buy land, from a moneylender to buy rice, or from a microfinance institution to buy a sewing machine. Since these loans must be repaid by saving after the cost is incurred, Rutherford calls this 'saving down'. Rutherford's point
17685-647: Was discovered in the Neander Valley . Similarly dated evidence of modern humans has been found in the Swabian Jura , including 42,000-year-old flutes which are the oldest musical instruments ever found, the 40,000-year-old Lion Man , and the 41,000-year-old Venus of Hohle Fels . The Nebra sky disk , created during the European Bronze Age , has been attributed to a German site. The Germanic peoples are thought to have emerged from
17820-419: Was established by an analysis of 'alternative financial institutions' in the developing world in 2004. The authors counted approximately 665 million client accounts at over 3,000 institutions that are serving people who are poorer than those served by the commercial banks. Of these accounts, 120 million were with institutions normally understood to practice microfinance. Reflecting the diverse historical roots of
17955-967: Was ranked the number one NGO in the world in 2015 and 2016 by the Geneva-based NGO Advisor. Microfinance provides women around the world with financial and non-financial services, especially in the most rural areas that do not have access to traditional banking and other basic financial infrastructure. It creates opportunities for women to start-up and build their businesses using their own skills and talents. Utilizing savings, credit, and microinsurance, Microfinance helps families create income-generating activities and better cope with risk. Women particularly benefit from microfinance as many microfinance institutions (MFIs) target female clients. Most microfinance institutions (MFIs) partner with other organizations like Water.org and Habitat for Humanity to provide additional services for their clients. Microfinance generally agree that women should be
18090-659: Was starting and shaping the modern industry of microfinancing. The approach of microfinance was institutionalized by Yunus in 1976, with the foundation of Grameen Bank in Bangladesh. Another pioneer in this sector is Pakistani social scientist Akhtar Hameed Khan . Since people in the developing world still largely depend on subsistence farming or basic food trade for their livelihood, significant resources have gone into supporting smallholder agriculture in developing countries. In developing economies , and particularly in rural areas, many activities that would be classified in
18225-495: Was the seventh-highest in the world . In response to the 2022 Russian invasion of Ukraine , Chancellor Olaf Scholz announced that German military expenditure would be increased past the NATO target of 2%, along with a one-time 2022 infusion of 100 billion euros, representing almost double the 53 billion euro military budget for 2021. In 2023, military spending according to NATO criteria amounted to $ 73.1 billion, or 1.64% of
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